The digital business revenue bill could cost Canadian consumers more than $1.1 billion a year, according to the Montreal Economic Institute (IEDM).
The MEI study published Thursday indicates that the tax on digital services would imply a 3% surcharge on the income of companies working in the field of online services, which can bring in revenue $3.4 billion over five years in Ottawa.
The organization draws a parallel with France, which implemented a similar tax in 2019, estimates that a 1% to 3% increase in service fees online would cost between $1.1 billion and $3.3 billion that consumers will have to bear.
The Ottawa plan aims to make the web giants “pay their fair share”, according to a multilateral agreement on a minimum tax of 15%, whereas during the last five years, they had an average tax rate of 24%.
“Instead of going to more hollow in our pockets, the government would do better to lighten the regulatory burden, especially in a context where inflation is eating away at our purchasing power,” said Olivier Rancourt, economist at the MEI and author of the publication.< /p>
“The data doesn't lie: digital service companies are already paying more than the fair share set by the government. This tax proposal responds to a false problem,” added Mr. Rancourt.
Katrine Johns has been a reporter on the news desk since 2013. Before that she wrote about young adolescence and family dynamics for Styles and was the legal affairs correspondent for the Metro desk. Before joining The Gal Post, Katrine Johns worked as a staff writer at the Village Voice and a freelancer for Newsday, The Wall Street Journal, GQ and Mirabella. To get in touch, contact me through my firstname.lastname@example.org 1-800-268-7128